BUSM3886 - Business & Government: Solving Global Unemployment

This essay discusses the social issue of unemployment, affecting both developed and developing nations, and the shared responsibility of national governments and multinational organizations in addressing it. It explores the roles these entities can play in mitigating unemployment, detailing specific activities for both government and companies. The essay further highlights factors that motivate organizations to pursue non-economic goals for social development. It examines various conditions and causes of unemployment, including its severe financial impacts, such as homelessness and decreased living standards, as well as indirect impacts like alcoholism, social division, and increased crime rates. The essay also addresses the role of national governments in preventing unemployment and creating job opportunities through active labor market programs and policies, and it emphasizes the importance of collaboration between government and business organizations to foster economic environments that naturally generate job opportunities. Specific actions, such as tax reduction and regulatory burden easing, are discussed. Finally, it highlights the corporate world's role in reducing unemployment through collaboration with educational institutions, fostering entrepreneurship, and developing multi-sector partnerships to create talent pools and win-win approaches that align public good with private interests.

Running Head: BUSINESS AND GOVERNMENT
Business and Government
Student’s Name
University Name
Author’s Note

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Introduction
This essay makes a detailed discussion of the most relevant social issue of unemployment which
has equally affected developed as well as the developing Nations. The national government as
well as the big multinational organisations both have a sense of responsibility towards the
society, which implies that they should play a significant role for the eradication of the issue of
unemployment. This is a discusses the desirable roles from the both ends, in order to mitigate the
issue of unemployment and further engages into discussion regarding what specific activities can
be undertaken by government as well as companies in order to achieve this target. Lastly, the
factors because of which the organisations should take up non economic goals former towards
social development has also been highlighted.
Discussion
The issue of unemployment is applicable for anyone who has working capability, but do not have
a working option. This is one of the most chronic social problems in the world and a big concern
for individuals and the Global communities as well. Unemployment of any community is
measured as a percentage of entire workforces which do not have employment, but tries to see
employment in an active way and is willing to work. Unemployment rate of Middle East
countries is a concern. In this context it was mentioned by Tikhonova (2017), that this
unemployment rate has dropped from 16 4% to 3.7% in the country.
There are basically five conditions of unemployment, frictional unemployment, classical
unemployment and seasonal unemployment, structure and unemployment as well as cyclical
unemployment. Unemployment level is variable and dependent on the economic condition as
well as other circumstances. The major social causes of unemployment are increasing

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population, Rapid change in technology, rising financial cost of companies, lack of education for
vocational skills and other miscellaneous social as well as psychological problems.
there are several important impacts of unemployment also. The first impact is the severe
financial problem that can rise out of prolonged unemployment. Loss of stable source of income
of the unemployed professionals makes then unable to meet their financial obligations. For
example in the poor countries of Africa as well as in Asian countries like Japan, conditions of
unemployment are synonymous with homelessness (Carley and Spapens 2017). This is in fact a
national crisis and has direct impact on the national economy. Thus the purchasing parity and
capacity of the entire country where there is major percentage of unemployed individuals
become low and the standard of living also decreases.
There are other indirect impacts of sustained unemployment also, which includes the likes of
high rate of alcoholism. In third world countries like India, sustained unemployment might
account for typical outcomes like marriage breakdown social division and discrimination,
propensity for suicide as well as increase in crime rate (Yunus 2017).
From social economic perspective, it can be communicated that unemployment results in loss of
output because the unemployed people exist in the society as consumers and did not as producers
which impacts the capital formation of the country negatively. High level of unemployment was
the reason behind the division of the Soviet society into have and have nots (Bonoli 2017).
Unemployment gradually leads to class conflict which gradually becomes the problem of social
unrest.
Statistics of crime in several countries executive that there is close relation between
unemployment as well as that of crime. The rate of unemployment was comparatively listen in

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1990 because of which rate of property crime was also lesser. Poverty student countries of Latin
America or Africa it is observed that closure of companies or attrition of majority of candidates
after training are common incidence. This is why, mass of young people are attracted to burglary,
drafting as well as other forms of crime in These areas, in order to make a livelihood.
The national government of all countries have a crucial role to play in context of preventing
unemployment on the creating job opportunities. The government has a role towards both
educated as well as an educated unemployed segments of the society. Researchers like Liu
(2017), have identified in many empirical literature that active programs in the labour markets
like job matching, wait subsidizing, providing service start-up support providing public support
for unemployment as well as vocational training and other services have been provided.
However, as per the arguments of Kickul and Lyons (2016), the extent to which the government
has been really involved in this programs have gained even lesser than stellar reputation. Reason
is that the government is not active enough to implement the program in a proper way or ensure
that execution of these programs is actually linked with Benefits received by the unemployed
section of the society. That is why; most of the governmental campaigns of creating jobs security
for the people are cleaned as ineffective, waste of money as well as a charade.
One of the strange outcomes is that these issues as well as the pertinent issue of unemployment
are equally prevailing in the developed countries along with the developing countries. In the
developing countries, the governments are implementing various policies to resolve labour
market problems, particularly unemployment (Christiano, Eichenbaum and Trabandt 2016).
However, the study of the typical characteristics of government campaigns launched in order to
increase employment rate, reviews that in the long run impact of these programs can be felt.
Much longer time Horizon is required for the influence of programs for increasing job

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opportunity can be felt by the citizens. In a short time span, the job deserving candidates
experienced about 1.5 to 1.6 % increasing probability of getting jobs (Ezzy 2017). However,
according to the outcome of government policies of developed countries of Europe, it has been
revealed that in the medium term that is one or two years after the implementation of the
government programs, the difference in growth rate of employment is about 5.4 % and after 2
further years the rate is about 8.7 % (Kaplan and Menzio 2016).
Drawing evidence from the conditions of unemployment existing in Australia, it can be regarded
that the Australian ministry for implement, Like the Other governments have focused on
sustained economic development in order to stabilize the labour market conditions. This will
create and indirect possibility of creation of more jobs in the market. Because of the Limited
success of direct government involved initiatives of reduction of unemployment, the stabilization
of business conditions is an instrument that the government of many countries including
Australia using to empower the business organisations for creating more job scope. Furthermore,
in countries like Australia the lower minimum increase rate of of basic limit of wage is the
reason why the organisations are also interested in creating job opportunities.
Similar initiative has been observed from almost all countries of G20. The actions are intended to
increase the potential of the economic environment and thereby create opportunity for 2 million
new jobs to be generated in the coming 10 financial years (Kroft and Notowidigdo 2016).
The previous instance shows the opportunity of collaboration between the government and the
business organisations to create an economic atmosphere which will automatically create job
opportunities in the long run. In this context, nor the government or the corporate organisations
need to implement specific Strategies for job creation.

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However, there are specific instances, rather actions that the government can implement in order
to generate scope of new job in the labour market. In this context, mandtory actions can be
undertaken in order to reduce tax as well as the regulatory burden on the organisations. This can
include activities like cutting red as well as green tape, abolishment of inefficient taxes like
carbon tax and mining tax as well as reduction of the company tax rate from 30 % to a
considerable lower volume. However Tikhonova (2017), makes considerable appraisal of the
government strategies of some of the developing Nations to implement the policy of maintaining
certain percentage of domestic work force, so that the internal labour market can be boosted as
an outcome of foreign direct investment from multinational organisations.
Themarket driven policy of public employment services in various countries need to be
restructured for delivering better outcome for the job candidates and further emphasize on the
principle of mutual obligation. As an outcome of change in the service system, the incentive for
service providers will be strengthened and they will be encouraged to deliver high level of
assistant by emphasising payment on the employment outcomes, which will set proper
Expectations for candidates and improve the support provided to the employers also.
Nevertheless, the biggest challenge faced by the government in order to tackle the problem of
unemployment is the demographic problems. The lack of Vocational skills is a major problem
because of which many deserving candidates are not able to find employment in the organised or
unorganised sector (Yunus 2017). With this target in view, strategies like old age pension,
disability support, family payment as well as parental leave policy are some of the latest
strategies implemented by various National governments in order to encourage people to
undergo free vocational training so that they can themselves create opportunity of employment.

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Although the essay has spoken in detail about the role of government or discussed opportunities
for collaboration between Government and business organisations, there are also some specific
roles which the corporate world can play in order to reduce the impact of unemployment in the
society. They can collaborate with the education providing organisations as well as the
vocational training institutes in order to help the job seeking candidates develop the necessary
skill that will help them to find employment. As highlighted by Bonoli (2017), organisations can
Foster entrepreneurship by supporting the start-up companies which funding capital and strategic
collaboration by means of their franchise business model. There are various private organisations
which can help in connecting talent with the job Market by reducing the gap between the job
seeking candidates as well as the employers.
Other significant approach that they can undertake in this context needs to be discussed in detail.
Firstly, organisations should emphasize on development of multi sector partnership. There are
evidence where individual business organisations can create partnership with any local academic
Institution, it can become a talent pool for the same organisation. In this context, organisations
might demand that the academic institution should inculcate specific organisational values in
advance within the students so that they can collaborate in the internal atmosphere of the
organisation in a better way. This will be our cost efficient way to increase productivity for the
academic institution as well as reduce the recruitment and selection cost for the organisation.
However, such partnerships will attract more individual to join Academics and involve them in
other civil society organisation so that they can get the benefit of employment through this
partnership model. However, as per the views of Liu (2017), it can be emphasized that some
specific developed Nations has only implemented this model. Nevertheless, such mutual talent
pool establishment is rare activity in third world countries where unemployment rate is highest.

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The next strategies development of Win-Win approaches.
There are several initiatives that can align public good with the private interest of the
organisations. Example of specific case studies show that business organisations can associate
with organisational priorities and combine short as well as long term talent consideration with an
impact for both business as well as society. For evidence it initiatives for connecting the
employees in an organisation with the local educational institutions. For evidence, the business
personal can provide guest visit to various institutions in order to guide that and get so that they
can get employment.
While the government organisations can play a crucial role in creating sustainable environment
for favourable employment opportunities, the corporate organisations can take a direct
accountability for job creation. However, economic conditions of the organisations after the big
financial crisis of 2008, has accounted for several job losses (Kickul and Lyons 2016). The US
has lost more than 3 million jobs starting from 2009 because of their attempts to adjust with the
seasonal fluctuations. As an outcome, the overall nonfarm payrolls have reduced to about 130
million in 2010.
The private sector is actually accountable for maximum job losses. Analysing the reason behind
this, Kaplan and Menzio (2016), highlights that, the economic downturn had a greater impact on
the goods producers compared to the service providers. The goods producing sector has
employed about 19 million people where as the service producing sector employed about 90
million people at the same time.
Nevertheless, the good news is that in spite of the job losses, some of the sectors have been able
to create significant job positions since 2018. The maximum boom has been observed in the

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Healthcare sector which has been able to develop more than 28 million jobs since 2015.only in
America; this sector has been accountable for generation of 3.5 million jobs from 2010 up to
2018 (Kickul and Lyons 2016).
Federal Government of several countries also creating job opportunities. By the end of the 2017-
18 financial years, it was observed that in many of the developing countries of Asia and the Pan
Pacific region, the number of Federal government workers has enhanced by 15000 to 20000.
This is an outcome of the increased intervention of government in the corporate economy (Ezzy
2017).
Other two most potential sectors that have been able to provide job opportunities are education
services as well as computer system design and services. The education sector has been
accountable for creation of more than 2 million jobs in almost all big countries of Asia. The
growth of technological skill among the job seeking candidates has resulted in creation of about
8000 jobs on an average in the computer systems design as well as services industry.
Although the responsibility of avoiding unemployment is a direct liability of the government, the
social responsibility of the organisations also makes them equally liable for the same. The Social
Responsibility undertaken by organisations comma as a part of their sustainable as well as
responsible business activities can be considered to be a form of corporate self regulation that
can be integrated into their business model. Hence, social responsibility of organisations should
not be perceived as any added liability. On the contrary it is a built in, as well as self regulatory
mechanism by means of which organisations monitor as well as ensure the adherence to law,
ethics as well as the international business policies (Kaplan and Menzio 2016). In order to do
that, they need to impress responsibilities as well as accountability for the impact of their
business activities on the environment, communities, stockholders, as well as other members of

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the public sphere where they are operating. In this context, it can be argued that big corporations
cannot ignore the responsibility they have towards society as well as the community. In this
context the stakeholder theory can be specified. This theory requires the organisations to deliver
equal value towards all their stakeholders. In this context, the employees who comprise their
workforce are extended segment of the greater workforce that has been seeking jobs. Hence, it is
their liability towards the other job seekers to empower them as well as make them unable to find
employment. This will in turn deliver greater value towards their own work force by ensuring the
inclusion of better and more capable Employees (Kroft and Notowidigdo 2016). In fact it is the
responsibility of the organisations to deliver value towards the customer groups also. They can
do this by helping them to enhance their purchasing parity which will be possible by means of
establishment which is only possible by employment.
Conclusion
In confusion, it can be regarded that the government it has undertaken in several intended
attempts to make direct elevation of the employment standard. Nevertheless, unemployment is an
issue in which government as well as the business organisations have to deal together. There are
some specific actions, has highlighted in support which the government should undertake in
order to promote employability. Moreover, as highlighted in this report, the government should
take a greater role in in empowering the six business sectors that are creating more employment
opportunities. On the other hand the role of organisations in creating talent pool has also been
realised as a major opportunity for creating employment in several countries.

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Reference List
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and global equity in the 21st century. Routledge.
Bonoli, G., 2017. Labour market and social protection reforms in international perspective:
parallel or converging tracks?. Taylor & Francis.
Carley, M. and Spapens, P., 2017. Sharing the world: sustainable living
Christiano, L.J., Eichenbaum, M.S. and Trabandt, M., 2016. Unemployment and business
cycles. Econometrica, 84(4), pp.1523-1569.
Ezzy, D., 2017. Narrating unemployment. Routledge.
Kaplan, G. and Menzio, G., 2016. Shopping externalities and self-fulfilling unemployment
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Liu, Y. ed., 2017. Unemployment: Perspectives and Solutions. BoD–Books on Demand.
Tikhonova, N., 2017. Poverty and social exclusion in the new Russia. Routledge.

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Yunus, M., 2017. Social business entrepreneurs are the solution. In The Future Makers (pp. 219-
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